LISBON — Portugal has extended measures aimed at cushioning households and businesses from a sharp rise in fuel prices, with the government saying more than €700 million has already been used to reduce the impact of higher fuel costs.

The announcement was made by Environment and Energy Minister Maria da Graça Carvalho during a government press conference on September 7. According to the official government statement, Portugal has been using additional revenue generated by higher fuel prices to reduce the petroleum-products tax, known as ISP.

The current tax mechanism provides a reduction equivalent to about 23 euro cents per litre, including VAT, on petrol and diesel consumed in Portugal. The government said the measure is intended to pass the benefit back to consumers rather than allow the state to gain financially from the fuel-price increase.

Officials also confirmed that the 10-cent-per-litre discount on agricultural diesel will be extended. This is particularly important for farmers because diesel is a necessary operating cost for tractors and other agricultural machinery. Independent reporting from Lusa also confirmed that the government is preparing measures to subsidise agricultural diesel as fuel costs rise.

Another support programme, known as the Solidarity Gas Bottle measure, will also continue through the end of the year. The government said additional assistance introduced since February totals around €100 million, including support for agricultural and professional diesel, transport operators, taxi drivers and social-sector organisations.

Portugal is facing the latest fuel-price pressure amid wider international energy-market disruption. The government pointed to geopolitical instability, the worsening Russia-Ukraine conflict and reduced European refining capacity as factors contributing to the current situation.

The impact has already been visible on Portuguese roads. Independent reporting said diesel prices reached a record level, while motorists staged protests including a slow-moving convoy and a horn demonstration in the Lisbon area.

The Portuguese government has said it will continue monitoring the market and could introduce additional measures if the effects spread to other sectors of the economy. The latest package therefore represents an attempt to limit the immediate burden on consumers and businesses while the international energy situation remains uncertain.